Traditional Culture Encyclopedia - Traditional virtues - What does economics include?
What does economics include?
Macroeconomic policy. The specific intervention measures formed on this basis provide a theoretical basis. Including policy objectives, policy tools and policy effects.
Because the market competition mechanism cannot be completely perfect, when the serious social, economic and political consequences of the free competition price mechanism exceed the economic problems caused by the shortage or surplus of certain commodities, the government will adopt certain price intervention policies to support or restrict the development of certain industries and make the scarce resources rationally allocated. The market allocation of resources is out of order, and the government needs to adopt some price intervention policies to overcome the problems caused by market failure. Government's price intervention policies are usually divided into price floor control and price ceiling control.
Bottom price supervision, also known as price support. Mainly to support the development of certain industries. Because there will be oversupply after the implementation of the support price, the government will buy the surplus supply, and then the government will adjust the market through part of the holder's inventory; In order to protect the interests of some low-income people, the government usually formulates a minimum wage policy. For example, protecting the prices of agricultural products. 2. Price ceiling control, also known as price ceiling. In order to curb the excessive price increase of some products and avoid inflation, the government will also adopt this policy for some monopoly industries. This policy is also necessary in special periods such as war or famine.
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